MetLife, Krispy Kreme lead big day for IPOs

CBS.MarketWatch.com

NEW YORK (CBS.MW) -- MetLife shares edged higher on their first day of public trading, while investors were gobbling up Krispy Kreme Doughnuts at a fat premium on Wednesday.

The insurance giant priced its $2.9 billion initial public offering at $14.25 per share, as the profitable, New York-based company shook off a jittery stock market and made its trading debut Wednesday.

By pricing toward the higher end of its $13-to-$15 range, MetLife was hoping for heavy investor interest in nontech companies. The company also boosted the size of its IPO to 202 million shares, up from 179 million, in a sign of confidence.

All five IPOs that braved the market fared well despite choppiness in the Nasdaq on Wednesday after an intensely volatile Tuesday. But several pending IPOs that were on the calendar for Wednesday didn't price.

Meanwhile, Cabot Electronics
CCMP, -0.29%
rose 2 5/8, or 11 percent, to 27 1/2 on its second day as a publicly traded company after gaining 24 percent in its first day, braving the Nasdaq's rocky trading.

Krispy Kreme

Krispy Kreme
krem
opened at 32, well above its $21 price, and then rose to 37 on volume of 7 million shares.

Indications of hunger for the stock came after the company priced its IPO at $21 per share, above its $18-to-$20 range. A total of 3 million shares were offered.

"It fits in with the 'out-with-the-new, in-with-the-old' mentality that's out there," said Art Hogan of Jefferies & Co.

Oratec Interventions

Oratec Interventions
otec
shrugged off shyness in the biotech sector to post a hefty gain.

The IPO opened at 19 1/8, well above its $14-per-share price, then rose to 25 5/8 as it picked up steam in the aftermarket.

The company raised about $35 million in the IPO. Merrill Lynch acted as lead underwriter.

Oratec Interventions priced its IPO at $14 per share, at the midpoint of its $13-to-$15 range.

The Menlo Park, Calif.-based maker of devices that use thermal energy to treat spine and joint disorders increased its price range from $11 to $13. Last August, it had posted an estimated range of $15 to $17, however.

MetLife

Before reaching the market, MetLife's IPO had had some trouble drumming up enthusiasm. But, with investors recently fleeing the tech sector, the timing may be have been good for a venerable company with real profits. "The deal is definitely looking better than it did two weeks ago," said one Wall Streeter familiar with the IPO.

Chief Executive Officer Robert Benmosche said the IPO will give MetLifemore flexibility than its previous structure as a mutually owned company controlled by its policyholders.

He told the cable channel CBNC that MetLife will push into asset management and get into the banking business -- not by merging but by offering added services.

Since the deal was scaled back in early March, the insurance category has perked up, along with banks and brokers, as many tech and Internet stocks have fallen out of favor.

John Hancock Financial
jhf
fell below its $17 offering price after going public Jan. 27 but then climbed. It closed at 18 7/16 on Wednesday.

Sun Life Financial Services
SLC, +0.00%
closed at 10 9/16 on Wednesday,above its March 24 offering price of $8.50 per share.

Price moves traditionally come after a company has started meeting with investors to pitch its IPO. MetLife changed the scope of the deal after gauging interest in the deal with lead underwriter CS First Boston.

The company filed for its stock offering Nov. 23.

MetLife's is one of the biggest U.S. IPOs ever in terms of the amount of money raised. Still, its deal will be dwarfed by AT&T's
T, -1.02%
planned $13.2 billion IPO of its wireless unit
AWE, +17.65%
later this quarter. That is roughly double the $6.5 billion raised by UPS
UPS, +0.59%
the biggest IPO on record for U.S. markets.

Vyyo

Vyyo
vyyo
a provider of wireless access systems, opened at 16, well above its $13.50 price. The Cupertino, Calif.-based company rose in the aftermarket to 20 1/4.

The strong performance came despite the fact that it priced at the lower end of its $13-to-$15 range.

Ulticom

Ulticom
ulcm
opened at 14 1/2, above its $13-per-share price. The Mt. Laurel, N.J.-based provider of network signaling software for wireless, wire-line and Internet communication services rose to 20 in the aftermarket.

The IPO priced at the bottom end of $13-to-$15 offering range. The firm earlier upped it range from $10 to $12 in a sign of health.

The docket

Gone from the day's calendar are Camtek
CAMT, +0.83%
an Israeli maker of instruments to gauge printed circuit boards.

Web software specialists Healthstream
HSTM, -0.35%
biotech firms Tanox
tnox
Lexicon Genetics
LEXG, +0.00%
and Adolor [a: ador] were also on the schedule for the day, but they didn't price.

Sangamo BioSciences' 5 million-share offering
SGMO, -4.44%
led by Lehman Bros., looks set to open for trading Thursday. Its planned pricing range is $15 to $17 per share.

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